34. Interest for non- payment or delayed payment
(1)Where a dealer fails to make payment of any tax due after provisional or other assessments by the date specified in the notice issued under section 45 or section 46 2 or section 481 for payment thereof, he shall, subject to the provisions of sub-section (2), pay a simple interest at the rate as specified in section 34B for the period of default, calculated from the day next following the date specified in such notice up to the day of full payment of such tax or up to the day preceding the day of commencement of proceedings under section 55, whichever is earlier upon so much of the amount of tax payable by him according to such notice as remains unpaid.
(2)Where as a result of an order under section 84, section 85, section 86, section 87 or section 88, the amount of tax due is modified, the interest payable under sub-section (1) shall be determined or re-determined on the basis of such modified amount and the excess interest paid, if any, shall be refunded.
(3) Where as a result of an order under section 84, section 85, section 86, section 87 or section 88 the amount of tax due is modified as stated in subsection (2), the interest shall be payable at the rate as specified in section 34B for the period of default, calculated from the day next following the date specified in the notice originally issued under section 45 or section 46 or section 48 for payment thereof upto the day of full payment of such tax due or upto the day preceding the day of commencement of proceedings under section 55, whichever is earlier, upon so much of the amount of modified tax due as remains unpaid.
34A. interest for failure to make payment of tax as referred to in clause (a) of section 118
Where a registered dealer fails to make payment of tax as referred to in clause (a) of sub-section (1) of section 118 in the prescribed manner and by the prescribed date he shall pay a simple interest at the rate as specified in section 34B for the period commencing on the date immediately following the prescribed date for payment of tax and ending on the date prior to the date of payment of such tax or up to the date of commencement of proceedings under section 55, whichever is earlier, upon so much of the amount of tax payable by him according to such return as remains unpaid.
34B. Rate of interest Payable
The interest payable for any period by a dealer, casual dealer, transporter, contractee, promoter, or any other person under the Act, shall be at the rate as specified below:-
(a) at the rate of one per centum per month up to the first ninety days of the period for which such interest is payable;
(b) at the rate of one and half per centum per month after the first ninety days and up to three hundred days of the period for which such interest is payable; and
(c) at the rate of two per centum per month after the first three hundred days of the period for which such interest is payable.
